A no-deal Brexit could plunge Britain into negative rates: Citigroup

Jun 01, 2020 - Fortune

Negative interest rates may eventually become unavoidable in the U.K., especially if there is a no-deal Brexit at the end of the year, according to Christian Schulz, director of European research at Citigroup.

The Bank of England would likely cut rates to -0.1% in the middle of 2021 if the U.K. leaves the European Union without a new trade deal in place, he said.

While more bond-buying and fiscal stimulus would be the first lines of defense in that case, the economy would likely stil...